Yum BrandsMIL:1YUM 65 Interest Coverage is 4.67 as of Mar. 2026, which is 16% above its 10-year median of 4.01. GuruFocus rates MIL:1YUM with a GF Score™ of 65/100 and a GF Value™ of €138.85 (Fairly Valued). The stock has 5 warning signs investors should review. Among 260 Restaurants companies, Yum Brands ranks worse than 55.38% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Yum Brands's
Operating Income
for the
three
months ended in Mar. 2026 was €517 Mil. Yum Brands's Interest Expense for the
three
months ended in Mar. 2026 was €-111 Mil.
Yum Brands's interest coverage for the quarter that ended in Mar. 2026 was 4.67.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Yum Brands's Interest Coverage or its related term are showing as below:
MIL:1YUM'
s Interest Coverage Range Over the Past 10 Years
Min: 2.99 Med: 4.01 Max: 5.1
Current: 5.1
MIL:1YUM's Interest Coverage is ranked worse than 55.38% of 260
companies
in the Restaurants industry
Industry Median: 6.45
vs MIL:1YUM: 5.10
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Yum Brands Interest Coverage Related Terms
Yum Brands Interest Coverage Historical Data
* Premium members only.
The historical data trend for Yum Brands's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MIL:1YUM vs CMG, DRI, YUMC: Interest Coverage Comparison
For the Restaurants subindustry, Yum Brands's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Yum Brands Interest Coverage vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Yum Brands's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Yum Brands's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Yum Brands (MIL:1YUM) has a Interest Coverage of 4.67 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Yum Brands and its competitors. This is 16% above median its historical median of 4.01. Over the past decade, Yum Brands' Interest Coverage has ranged from 2.99 to 5.10. According to the industry distribution chart, Yum Brands ranks #144 out of 260 companies in the Restaurants industry, placing it in the top 55.4%.
Is Yum Brands' Interest Coverage too high?
Yum Brands' current Interest Coverage of 4.67 is 16% above median its 10-year median of 4.01. Over the past 10 years, this metric has ranged from a low of 2.99 to a high of 5.10. The Restaurants industry median Interest Coverage is 6.45. Yum Brands' value of 4.67 is 27.6% below this industry median. Based on the distribution chart, Yum Brands ranks #144 out of 260 companies in the Restaurants industry, which is below the industry midpoint. Overall, Yum Brands has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Yum Brands' Interest Coverage compare to CMG and DRI?
According to the Restaurants industry distribution chart, Yum Brands ranks #144 out of 260 companies for Interest Coverage. This places Yum Brands in the lower half of its industry. The industry median Interest Coverage is 6.45. Yum Brands' value of 4.67 is 27.6% below this benchmark. Historically, Yum Brands' own Interest Coverage has ranged from 2.99 to 5.10 over the past decade. While the company's 10-year median is 4.01 vs. the industry median of 6.45, Yum Brands has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Restaurants company?
The median Interest Coverage among Restaurants companies is 6.45, based on 260 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Yum Brands's current Interest Coverage of 4.67 is 27.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Yum Brands and its competitors. For the Restaurants industry, the median Interest Coverage is 6.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yum Brands's current Interest Coverage is 4.67, which is 16% above median its own 10-year median of 4.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yum Brands stock overvalued right now?
Based on GuruFocus' analysis, Yum Brands (MIL:1YUM) is currently considered Fairly Valued. The stock's GF Value™ is €138.85, compared to a current price of €136.30 — trading 1.8% below its estimated fair value. The current Interest Coverage is 4.67, which is 16% above median its 10-year median of 4.01 and 27.6% below the Restaurants industry median of 6.45. Yum Brands' overall GF Score™ is 65/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Yum Brands (MIL:1YUM), the current Interest Coverage is 4.67 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Yum Brands (MIL:1YUM) Overvalued in 2026?
Based on GuruFocus' analysis, Yum Brands stock appears to be undervalued.
The current stock price of €136.30 is trading 1.8% below its estimated GF Value™ of €138.85.
GuruFocus considers Yum Brands to be Fairly Valued.
Key valuation signals for MIL:1YUM:
Interest Coverage: 4.67 (16% above median its 10-year median of 4.01)
GF Value™: €138.85 vs. price of €136.30 (1.8% below fair value)
Industry Position: 27.6% below the Restaurants median (#144 of 260)
No single metric tells the full story. See the MIL:1YUM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
As of the end of 2025, Yum Brands generated over $68 billion in systemwide sales from more than 63,000 restaurants across 155 markets, making it the world's second-largest restaurant firm by dollar sales. Its portfolio includes KFC (33,897 stores), Pizza Hut (19,974), Taco Bell (9,030), and Habit Burger (384), with 72% of locations in international markets. As 97% of its portfolio is franchised, Yum's business model is tilted toward recurring franchise royalties and marketing contributions (64% of revenue), with the balance derived from sales at company-owned locations. The company traces its roots to a 1997 spinoff of PepsiCo's restaurant assets.
65GF Score
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